Zen Trading Tech

1. Intro
2. Definition
3. Principles that help me find trades:
4. Example Charts
5. Breakout of the 18 Bar Range – Measured Move
6. Breakout of the 18 Bar Range – Measured Move Fails
7. Fading the BO of the 18-bar range
8. Breakout of the 18-bar range – shouldn’t run stops

Intro

One skill that helps me trade is the ability to read the opening range.

Definition

The Opening Range is ambiguous.

But for my purposes here I use the following:

• The first hour of the RTH
• The first 18 bars of the 5 minute chart of the RTH
• In a protracted TTR – what happens after the first DB and DT.
• Includes at least 2 reversals (ORRV)

Principles that help me find trades:

1. The size of the opening range (OR) can predict what type of day be unfolding.
2. 90% of days have the High of the Day (HoD) and the Low of the Day (LoD) within the 1st 18 bars.
3. Therefore swing traders pay attention to this for their stops.
4. TTR days have limit order traders fading the BO of the range. Sometimes they get trapped.

Example Charts

Here are some charts showing the mark up I like to practice to help me improve my trading skills.

Breakout of the 18 Bar Range – Measured Move

Breakout of the 18 Bar Range – Measured Move Fails

Fading the BO of the 18-bar range

Breakout of the 18-bar range – shouldn’t run stops

• “Most” days this will not happen. So it is a low probability % outcome.
• I have some examples here.